Everywhere you turn you will hear recommendations to put away a portion of your income. The saving habit isn’t a novel one but some people still have a problem with it. According to a 2013 survey by Bankrate, the number of Americans who don’t have an emergency savings account is at 27 percent. You may be wondering why the balance in your savings fund doesn’t go higher no matter the effort you put in. There are several ways to multiply those figures in your savings account to something that is more palatable.

Manage Spending
Knowing where your money goes is the most effective way of maximizing your salary. Even if you have a big salary but have unnecessary spending, it won’t make any difference. Start by managing a little amount of money and taking care of large sums won’t be a problem. Find ways to make savings in everything you do. For example, carrying your own lunch instead of eating out when at work can save you a significant amount every month. If you are using a phone plan with services that you don’t need, change it. Get rid of cable and start streaming TV shows and films. Such spending habits will make the most of whatever income you get and help you save a substantial amount.

Save Extra Funds as Well
Just because you got a fat bonus at the end of the year does not mean that all of it has to go. Remember that even bonus money is from your hard work. It is fine to treat yourself but take some of it and put it into your savings fund. When you use coupons for shopping or find deals that save a few dollars on your planned budget, put that money in savings. Whether it’s a tax refund or raise, save it. A few dollars’ worth of discounts each month can make a huge difference in your retirement savings plan.

Have a Realistic Savings Plan
Putting money away haphazardly may not work out as well as you anticipate. Before you start a retirement or emergency account, outline your goals. Know what types of investments will be most suitable for your retirement funds. If it is an annuity, learn which one would best suit your financial objectives. A tool such a deferred annuities calculator can help you find out how your funds are fairing.

Besides investment, setting goals allows you to determine how much you are going to put away every month. For example, you can say that $200 is for savings, regardless of the bills you have to pay. Objectives establish discipline when saving for retirement . It’s not even a matter of how much you can put away but the commitment of doing it. When making this decision, be sure you can abide by it. Don’t commit to saving $200 when your account cannot afford it.

Automate Saving
You can do better by ensuring that your savings don’t even get in your hands. As soon as the salary comes in, you can automate deductions to go into your savings account. Doing this prevents the temptation of diverting the money since you don’t even have it on hand.
According to Smart About Money, waiting until the last minute to save is a recipe for disaster. By automating savings, you are making them a part of your spending habit, and over time it becomes natural.

A savings account will help with your retirement investment plans, and emergency funds are handy when in sticky situations. Developing a proper plan will help you capitalize on your income and grow your savings. All it takes is the motivation and discipline to carry through.

Author's Bio: 

Hannah Whittenly is a freelance writer from Sacramento, California. A mother of two, Hannah enjoys writing on blogs of all niches.